Adrian Strong, Senior Partner...
"Rent review and lease renewal issues frequently bring landlords and tenants into conflict with resultant complex and costly negotiations, sometimes ending in court. However, with the right advice and experience, even the most difficult of situations can usually be structured into an agreement without the necessity to resort to costly, time consuming and stressful litigation."
Whether you want to renew a lease or bring one to and end, there are strict procedures to be followed. Issues such as setting interim rents during negotiations or avoiding the pitfalls for the tenant of repairing clauses or the potentially huge and unexpected cost for the Landlord if missing a procedural step or deadline, need to be properly considered if the desired outcome is to be achieved at minimum time and expense.
Unless specifically contracted out, commercial tenants have a right to renew leases under the Landlord and Tenant Act 1954. Whilst it is more usual for the landlord to serve notice on the tenant stating whether or not it will grant a new lease, occasionally it is strategically advantageous for the tenant to serve notice on the landlord. If a new lease is offered, the notice will outline the terms. If no agreement is reached, the tenant may apply to a court for a new lease.
Our Lease Renewals Team will guide you efficiently and safely through these complex issues and assist in developing a strategy that gets you the timely business results you want.
Like other aspects of commercial property, rent reviews are subject to frequent changing laws and statutes. A lease will set out the basis of the rent review process which must then be interpreted in the context of current legislation and case law. Whether the aim is to minimise costs for the tenant or maximise returns for the landlord, comprehensive market and specialist commercial property knowledge is required to ensure the best outcome.
Our Rent Review Service includes detailed research of comparable rental transactions, consideration of the lease terms and their impact on rental value within a detailed report to the client that includes our rental valuation and recommendations.
We will use our expertise to negotiate the best settlement possible. If it is not possible for this to be achieved by negotiation, we can assist with the alternative dispute resolution system and / or prepare and present an expert witness case for arbitrators or independent experts.